Federal, state, and local governments split N1.894 trillion in revenue for February

The Federation Account Allocation Committee has disbursed a total of N1.894 trillion to the three tiers of government as federation allocation for February 2026, according to a statement issued by the Federal Ministry of Finance on Friday. This distribution was made from a gross revenue of N2.230 trillion generated during the month.

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The Federal Government's share of the allocation stood at N675.086 billion, while the 36 states received a combined total of N651.525 billion, and the 774 local government councils got N456.467 billion.

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In addition to their statutory allocations, oil-producing states also received N110.949 billion as derivation revenue, representing 13 per cent of mineral proceeds.

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A significant portion of the revenue, N77.302 billion, was paid to revenue-generating agencies as the cost of collection, while N259.078 billion was allocated for transfers, interventions and refunds.

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The gross revenue from Value Added Tax for February was N668.450 billion, which is a decline of N414.710 billion compared to the N1.083 trillion distributed in the preceding month.

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From the VAT revenue, N26.738 billion was deducted as cost of collection, and N22.593 billion was set aside for transfers, interventions and refunds, leaving N619.119 billion to be shared among the three tiers of government.

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The Federal Government received N61.912 billion from the VAT revenue, while the states got N340.515 billion and local government councils received N216.692 billion.

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The gross statutory revenue for February was N1.561 trillion, which is lower than the N1.957 trillion received in the previous month, representing a decrease of N395.138 billion.

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From the statutory revenue, N50.564 billion was deducted as cost of collection, and N236.485 billion was allocated for transfers, interventions and refunds, with the balance of N1.274 trillion distributed to the three tiers of government.

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The distribution of the statutory revenue saw the Federal Government receiving N613.174 billion, states getting N311.010 billion, and local governments receiving N239.776 billion, in addition to N110.949 billion allocated as derivation revenue to oil-producing states.

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Revenue from oil and gas royalty, as well as excise duty, recorded significant increases during the period, but collections from other sources, including Petroleum Profit Tax, Hydrocarbon Tax, Companies Income Tax, Capital Gains Tax, Stamp Duties, and Value Added Tax, declined substantially during the month under review.